Measures Urgently Needed to Confront Panama Canal Water Crisis

The Panama Canal is exposed to extreme situations with climatic phenomena that generate prolonged droughts and even floods in some seasons, in addition to the fact that population growth and water consumption have exceeded expectations.  This was warned by Salvatore Basile, vice president of Corporate Affairs of the Panama Canal Authority (ACP), during the monthly meeting of the Panamanian Association of Business Executives (Apede) whose theme was “The Water Challenge.” 

“For the Panama Canal it is important that before the end of this calendar year we can give news to the world that we have made a concrete decision that will lead to the problem being solved in the medium and long term.”  Basile stressed that the drought last year led the Canal to make the decision to reduce the number of transits, which today stands at 32 daily vessel transits, when under normal conditions it is between 38 and 42.  At the same time, the population’s water consumption due to demographic growth also represents pressure on the resource, since the two lakes Gatún and Alajuela are no longer sufficient, much less when they are exposed to droughts such as the one experienced between 2023 and part of 2024. 

The vice president of the Canal said that the current rains are not enough to permanently resolve the water crisis that the Canal is experiencing.  Although it has been possible to increase traffic and draft a little, and as of July 1 daily traffic will increase from 32 to 33 ships per day, it is insisted that the limits of the Canal’s basin be reviewed, as well as the possibility of building a new reservoir.  “We are cautiously watching the increase in rainfall.  Even though the rains have returned, we remain cautious and it is important that the sense of urgency is not lost.  We must give a message to the world that Panama has a solution and, therefore, demonstrate that the sustainability of the Canal will be guaranteed,” Basile reiterated.  Basile said that the decision whether or not to build a reservoir on the Indian River is now in the hands of the new administration, because the outgoing Government indicated that it had not found the political moment to adopt a solution. 

The president of the Panamanian Association of Business Executives (Apede), Juan Carlos Arosemena, warned that the image of the country and the Canal has been damaged worldwide due to the lack of actions that can guarantee a solution to the water crisis.  Arosemena asked the incoming administration to take the issue of the Canal as an urgent task and publicize the measure that will not only guarantee water for the interoceanic waterway through which between 5% and 6% of world trade passes, but also the water resource for the consumption of the population.  “Panamanians need to drink water, but the Canal also requires water and is essential for the country.  It is regrettable that this government and previous ones have not taken the necessary measures.  In addition to the Canal, there are other issues such as Social Security, so now it will be up to President-elect Mulino to make decisions on those two issues,” said the president of Apede.  The business leader added that it is essential that the Government facilitate the possibility of building a reservoir on the Indio River to the Canal, at the same time as expanding the hydrographic basin it manages because it limits its growth.